Indiana Property Tax Law

Looking for someone who is familiar with Indiana Property Tax law and specifically for someone with experience in gaining the property of others by paying delinquent property tax.

Search google for Indiana legal code and you will probably get a good start. But from what I have read, you have to be several years delinquent before they will seize your property. It depends on the state but some will auction the property and some will sell it for the back taxes.

About 50 years ago Indiana had a bunch of trouble where homes sold under contract frequently had mechanics leins on them (for heating, siding, roofing, etc.).

The fellows with the leins could go to court and force the sale of the house to get paid for the leins. The guy paying for the house on the contract didn't even have to be notified.

The situation got pretty nasty during a period of high growth so the legislature acted to clean up the problem.

Subsequently the state has made other changes, re-codifications, reorganizations of the pertinent statutes, and imposition of various state supreme court decisions on top of all of that.

I'm not a lawyer but as long as I had any close relatives there owning a house I tried to keep up with Indiana statutes and decisions.

Finding out how to buy a property for back taxes in Indiana is not all that straightforward a deal.

If I had to help someone out these days I'd read the statutes and decisions quickly THEN CALL AN INDIANA LAWYER who specializes in titles and taxes.

MK- My recommendation would be to contact your county delinquent tax collector and ask them who the most experienced RE attorney in town is. Make an appointment, and pay for an hour or so of consultation time. That would be the best money you can spend.

The pitfalls and problems associated with tax deeds are numerous and I consult with people who have wasted money on worthless property every month or so. There is a great deal of research and understanding that goes with buying delinquent tax properties, however the payoff can be very rewarding if done wisely.

For example, I know of a person who won the auction for a postage-stamp lot containing a decommissioned water tower, only to find the cost of tearing it down and selling the scrap was more than the value of the scrap. Another person bought an 800-yard section of active train track which could never be used for any purpose (other than driving their own train back and forth on the track!) Finally, I've heard of people who "accidentally" bought CERCLA/EPA Superfund sites and assumed the liability of cleanup!

You MUST do your homework and know what you're bidding on!

GOOD LUCK!

Property that has been delinquent for more than one billing cycle is eligible for tax sale; so for example this fall’s sales are for properties that first were delinquent for taxes due starting in May of 2010 or prior. Sales are conducted by the treasurer in the fall each year, with the bulk in October. The county is required to publish the list each year prior to the sale, and those publications are happening now. The delinquent taxpayer has up to the date of the sale to pay off their balance with penalties, otherwise the lien is sold at auction for a minimum price equalling the back taxes, penalties, and costs of sale.

If it is sold, the taxpayer has one year to redeem the sale from the lien buyer. In order to redeem, the taxpayer has to pay the full minimum bid plus between 10 and 15% of the amount (depending on how long it takes to pay back) to the lien holder. In addition to the back taxes and penalties, the taxpayer also must pay 10% per annum on the surplus between the minimum and final bid price, as well as on any subsequent taxes and assessments on the property. If they don’t redeem, congrats - you now own the property.

This is the process in a nutshell, and while there are other little nuances that happen, say, if the lien doesn’t sell at the sale, this is what happens in most cases. Your county treasurer is the one who handles the sale process, and most of them are more than happy to answer any questions.

The post above is pretty accurate. I just went through this. Had to pay 2007/2008/2009 in total plus fines, court fees, etc., all at once with a Cashier’s Check. I had until Oct 27th to do so, or I would have lost my paid for home. Never again. I am scrambling to come up with the second half of 2010’s taxes, but won’t have to go through this again.

Thanks ex-girlfriend who was given responsibility for all bills and hid the Certified Mail from me while assuring me that the taxes were paid. B*tch.

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